Mortgage Holiday??

lullabellea

Hi anyone had a motgage holiday? I didn't even know it was possible but my workd colleague suggested it to me after I confessed I urgently needed to sort my ancient leaking bathroom.

Are there any downsides to this? Do all lenders do them? (We're with Nationwide). Would we have to remortgage? Would it affect our current mortgage which is only one year into a three year fixed term? Is this really the best way to finance my bathroom? We're pretty stretched at the moment and are reluctant to add to our worries by gettting a loan. The ideal scenario was for us to wait until our childcare costs dropped next January and get a loan then. However, our bathroom is leaking quite badly and threatening to cause major problems.

Any replies gratefully received...

MarkyMarkD

Most lenders will only give you a mortgage payment holiday if you have over-paid on the mortgage in the past. Some mortgage lenders, however, offer it for special reasons (like if you have a baby, for example) even if you've not over-paid.

Asking your lender is the best way to find out if they'll do it or not.

Remortgaging isn't relevant - how would it be? You want your existing lender to give you a payment holiday, not to move the mortgage elsewhere just so you can not pay for a month or two.

Have you considered getting a further advance from Nationwide to cover the bathroom repairs? It obviously depends on your current loan-to-value percentage and income multiple, but it could be one of the best ways to finance a house improvement over a long term (which means lower repayments per month, but obviously higher total repayments).

beachbeth

We didn't have to overpay in order to get a mortgage holiday. One of our schemes we were on expired and we took out another one. They informed us that we would be able to take a mortgage break now that we were on that scheme. We have just finished a 3 month break because my husband was going to be changed from weekly to monthly pay and we wanted to make sure we didn't go short when this happened. His firm changed his mind about the change but we still went ahead with the break and have the money in the bank to put towards a house move instead.

You may find it depends what scheme you are on as to whether they will allow you a break but when I was recently looking into mortgages Nationwide came up as one of the building societies that allowed payment breaks.

kenshaz

A mortgage holiday could work out more expensive than other alternative lending ,the only winner is the lender your mortgage is over a long term,so the money that you effectively use from your mortgage is compounded .
The word holiday is deceptive ,it gives the impression that it is a free period.

MortgageMamma

I would suggest you give Nationwide a call and ask them if it is possible for you to do this - if its not they may well be able to offer you a further advance or even a temp overdraft extension or something

How much work will you need to do to the bathroom and how much will it cost? B&Q have bathroom suites starting at about £250 and I was in IKEA last week they have got some nice cheap accessorie kind of stuff in too

kenshaz

My advice would be to wait,how bad are the leaks.There are threads on this site that would give you plumbing advice .Ring around get some free quotes ,sort your leaks out and wait until January,when your childcare costs drop.But you do need to do something about your bath-room ,but it may not require a new one for a while. Speak to some experts or post on here.
Good luck.
Borrowing money that you cannot afford,well think about it.

MortgageMamma

Ultimately I think the right thing to do depends on the severity of the leaks

Ie.g. f you have a shower cubicble with a crack or thats not sealed properly that can cause the floorboards to get soaked and thats dangerous

If its just a couple of leaky taps the tighten them the best you can and make do for now

You wouldnt believe some of the places I have lived over the years, but as long as you are safe, fed and sheltered it could wait

But if it really needs doing it needs doing. Espec if you have kids.

withabix

I had a mortgage holiday last year due to a very large unexpected bill.

My car suffered engine damage to the tune of £2500 and I didn't have access to that sort of money, so I arranged a mortgage holiday for 4 months.

They are useful in an emergency and that is what they should be used for.

If you've got a short-term financial crisis, this is a much better solution than getting into arrears by not paying the mortgage without agreement or by not sorting out your financial crisis.

[Deleted User]

Nationwide offer mortgage holidays for up to 1 yr but you have to meet certain conditions, tells u all about on there website.

withabix

asaengrit wrote: »

If you want to know, click here
http://www.getwisely.com/Mortgage_Holiday-main.html

:spam: reported

Bargain_Rzl

funk_punk wrote: »

Nationwide offer mortgage holidays for up to 1 yr but you have to meet certain conditions, tells u all about on there website.

Yes, I seem to recall it depends on previous overpayments and the LTV at the end of the "holiday" period.